I'm an entrepreneur, angel investor, venture capitalist, author and philanthropist. Most recently, I am the founder of Grow America, an organization dedicated to helping business builders nationwide and worldwide. I have an MBA and forty years of business experience as a CEO. I have launched ten companies. Four were failures. MarketStar, Island Park Investments and Mercato Partners are home runs. I currently have sixty investments in emerging start up firms. I know how to launch, grow and sell a business. I write columns on a range of entrepreneurial topics to teach and guide visionaries to realize their business dreams. I am passionate about building strong corporate cultures and coaching the next generation of exceptional leaders.

Why Utah is Forbes Best State for Business (And 10 Tips To Help You Gain These Advantages Too)

Utah has just been named Forbes Best State for Business for the third consecutive year. What’s happening in the Beehive state to receive this singular honor? And, most importantly, how can other communities get these advantages too?

Utah has been named Forbes No. 1 State for Business for three consecutive years (photo courtesy of Forbes).

As a resident of Utah and a participant in a powerful economic engine, I am pleased to share with you why our State is at the top of the pack, and, even more importantly, why its foundational underpinnings can provide ideas and impetus that could allow your own community to achieve a similar level of business winning success.

For the Record

Since 2006, Utah’s economy has expanded at an annual rate of 2.3%, versus 0.5% for the nation as a whole. “We have a very fertile environment for entrepreneurs and business,” says Gov. Gary Herbert, who was reelected in a 68%-28% landslide last year.

Herbert cites three areas where Utah has a competitive advantage: Taxes, labor force and a favorable regulatory climate.

1) Utah’s 5% flat corporate tax rate is one of the lowest in the country. The Tax Foundation, which released a study in February of 2012 that measures the tax burdens in each state across different industries, rated Utah sixth best for existing firms. (Utah also ranked No. 10 for new firms.)

Salt Lake CIty, Utah (Photo credit Ravell Call, Deseret News)

2) Utah has a young, vibrant workforce. The state’s median age of 29 is 4 years lower than Texas, the next youngest state. A third of the state’s workforce is bilingual, according to the Economic Development Corporation of Utah. This is largely a result of the state’s large population of LDS, many of whom spend time as missionaries overseas. Utah’s language ability is an attractive benefit for companies in an increasingly global economy, and has helped lure large U.S. companies with international operations such as eBay, Goldman Sachs, Oracle and Procter & Gamble. Goldman Sachs’ Salt Lake City office is its second biggest in the Americas, with more than 1,400 employees. Utah has doubled its international trade over the past five years and this year it is up nearly 40%.

3) Utah ranks third for a positive regulatory climate in the Mercatus Center’s Freedom in the 50 Statesstudy–a new metric in the Best States study. “Utah is less likely to reward frivolous lawsuits or to hand out excessive judgments,” says Jason Sorens, who co-authored the report. “Utah’s health insurance regulations are generally light, resulting in less costly policies and more choice for people in the small group and individual markets.”

Last year, Gov. Herbert initiated a review of the state’s nearly 2,000 administrative rules. The state eliminated or modified 368 of them that he characterized as “a drag on the economy.”

Utah Governor Gary Herbert (photo courtesy of Forbes)

Among the other pluses for Utah: energy costs that are 29% below the national average. It is also one of only seven states to maintain an AAA bond rating from the three rating agencies–something the U.S., as a nation, lost last year. Gov. Herbert’s motto: “Government should get off of your backs and out of your wallets.”

Lastly, Utah is proud of its Olympic-level ski resorts, its urban attractions and its acclaimed status as the safest state in the nation.

What else is Utah doing that has propelled it to the top of the leader board for new business? Without question, Utah prospers due to a unified purpose and effort across all contributing economic entities. Its community leaders, from education to government, work harmoniously together to solve problems and to maximize powerful growth opportunities.

For example, I attend on a regular basis a gathering of local leaders with one thought on their collective minds – job creation for the residents of Northern Utah. It’s similar in nature to what’s happening in Salt Lake City and in towns across the state.

The right economic development environment supports healthy commerce (Photo courtesy of Deseret News)

Gathered around the table on a monthly basis are the president of the Chamber of Commerce, the President of the University, the school district superintendents, county commissioners, the mayor, the president of the technology college, successful business leaders, both large and small, bankers, entrepreneurs, a spokesman for local military base, area economic development directors, and local angel investors and venture capitals. A well respected community business executive is the leader of the committee. He has seen the need to organize the group and he has invited other key luminaries to join the organization. None are paid. It is a labor of love.

Topics include what each organization is doing to support, encourage and actively foment business (recruitment, existing and entrepreneurial) growth with conversations on how these various entities can work together to remove barriers, improve communications and achieve measurable results. Interestingly, the group is not connected to any legal or elected body. It gathers its power from among the participants to make decisions for the common good of the community. Following a thoughtful debate on any given topic and a vote, each member sustains the plan unanimously. Action follows.

It has become clear to this high powered committee that to build a robust and thriving local economy it must talk to its customers first. To this end, the committee invites aspiring entrepreneurs and human resource managers from area firms from high growth industries and companies being recruited, to a meeting to learn what key resources they might need including the type of workers they will be hiring in the future, how many they will need and what skills workers will need to possess.

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Great article indeed Alan!! I think that from a State, a Nation, or a Business that they all have an inherent culture or organizational development that is either innovative, modern, and progressive or one that is not. Organizational Development starts from the CEO or in this case Governor Gary Herbert whom I witnessed him at another ribbing cutting for Rees Capital to mentor, angel invest, and invest in entrepreneurs which has provided the USA it previous financial successes.

Therefore, this culture of success has made Utah a vibrant economic success and thus the overall business drivers of productivity, quality, and safety are also much higher than those in other areas with employee wellness much, much higher as well all of which are indicative of a strong business culture, thereto.

Thank you, Bradley. And yes, what fun to see Amy Anderson’s success with REES Capital thus far. We need many more of these organizations, across the US, along with the ecosystem and environment in every community to help new entrepreneurs to succeed. Thanks very much for your note. Regards, Alan

Devin, if you choose to move, we welcome you! Regardless, the traits I’ve outlined are designed to help every community to become more business friendly, and that’s my biggest objective this year. Thank you so much for your kind words. They’ve made my day! Regards, Alan

I actually started a business there in 2011 and it didn’t work out in because a certain state senator (coughwrotethebillregardingrainwaterharvestingcough) was far more interested in securing distribution rights for the product than he was in crafting a bill that would attract a new business. I left disgusted at the overt corruption.

That being said, Utah is repeating a HUGE mistake and that is allowing the infiltration of illegal aliens into the business environment. I didn’t say letting them in, I said into the business environment. they come in a set u unlicensed construction and labor companies and state officials tend to not enforce the laws in regards to them, perhaps on federal level orders, and the result is a destroyed environment for the legit businesses. See California as an example of what happens. I may try again though because now California is an economic wasteland and we are dying on the vine, 90% of other small business owners we know. I have family there so I can couch serf while I try to find a job and start my business.